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A study by Gabriel Zuckman, a professor at the Paris School of Economics, and Ben Tippett, a lecturer at King’s College London, proposes establishing a minimum tax of 2% on households with a combined net worth of more than 100 million pounds. According to their estimates, the measure would affect fewer than 1,000 of the UK’s wealthiest families but could generate about £10 billion in additional revenue for the budget each year, The Guardian reports.
Economists believe that the current tax system allows high-net-worth individuals to significantly reduce their tax burden through holding companies, charitable structures, and the transfer of assets among family members. In their view, the new mechanism should establish a minimum tax rate regardless of such schemes.
Under the proposal, the UK tax authority (HMRC) would calculate a family’s total wealth, including real estate, stakes in private businesses, land, works of art, pension savings, and other controlled assets. It is also proposed to maintain tax liabilities for ten years after high-net-worth individuals move abroad, in order to limit the ability to change tax residency solely for the purpose of tax avoidance.
Burnham has previously stated that he intends to make the British tax system “fairer,” while avoiding further social polarization. At the same time, his team is considering other measures to increase budget revenue, including a possible increase in the capital gains tax.
The initiative reflects a broader international trend. In recent years, the introduction of a minimum tax on the ultra-wealthy has been discussed at G20 forums and supported by a number of countries as one of the tools to combat growing wealth inequality. The authors of the study argue that, unlike many past European wealth taxes, their proposal applies only to ultra-wealthy households, covers most types of assets, and should reduce opportunities for tax optimization.
